BILL NUMBER: AB 2897	CHAPTERED  09/12/00

	CHAPTER   415
	FILED WITH SECRETARY OF STATE   SEPTEMBER 12, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 11, 2000
	PASSED THE SENATE   AUGUST 22, 2000
	PASSED THE ASSEMBLY   MAY 3, 2000

INTRODUCED BY   Committee on Revenue and Taxation (Knox (Chair),
Alquist, Aroner, Ducheny, Honda, and Romero)

                        MARCH 9, 2000

   An act to amend Section 6810 of the Corporations Code, and to
amend Sections 19411 and 23188 of the Revenue and Taxation Code,
relating to taxation.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2897, Committee on Revenue and Taxation.  Taxation.
   Under existing law, the Franchise Tax Board may recover any refund
or credit that is erroneously made or allowed, together with
interest from the date demand for recovery was made.  In the case of
a corporation, interest is computed from the date the refund was made
or the credit allowed, instead of the date a demand for recovery was
made.
   This bill would instead provide that for all persons interest
shall be computed beginning 30 days after the Franchise Tax Board
mails a notice and demand for repayment.
   This bill would also correct certain statutory references and make
nonsubstantive, technical changes relating to taxation.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 6810 of the Corporations Code is amended to
read:
   6810.  (a) Upon the failure of a corporation to file the statement
required by Section 6210, the Secretary of State shall mail a notice
of that delinquency to the corporation.  The notice shall also
contain information concerning the application of this section, and
advise the corporation of the penalty imposed by Section 19141 of the
Revenue and Taxation Code for failure to timely file the required
statement after notice of delinquency has been mailed by the
Secretary of State.  If, within 60 days after the mailing of the
notice of delinquency, a statement pursuant to Section 6210 has not
been filed by the corporation, the Secretary of State may pursuant to
regulation certify the name of the corporation to the Franchise Tax
Board.
   (b) Upon certification pursuant to subdivision (a), the Franchise
Tax Board shall assess against the corporation a penalty of fifty
dollars ($50) pursuant to Section 19141 of the Revenue and Taxation
Code.
   (c) The penalty herein provided shall not apply to a corporation
which on or prior to the date of certification pursuant to
subdivision (a) has dissolved or has been merged into another
corporation.
   (d) The penalty herein provided shall not apply and the Secretary
of State need not mail a notice of delinquency to a corporation the
corporate powers, rights, and privileges of which have been suspended
by the Franchise Tax Board pursuant to Section 23301, 23301.5, or
23775 of the Revenue and Taxation Code on or prior to, and remain
suspended on, the last day of the filing period pursuant to Section
6210.  The Secretary of State need not mail a form pursuant to
Section 6210 to a corporation the corporate powers, rights, and
privileges of which have been so suspended by the Franchise Tax Board
on or prior to, and remain suspended on, the day the Secretary of
State prepares the forms for mailing.
   (e) If, after certification pursuant to subdivision (a) the
Secretary of State finds the required statement was filed before the
expiration of the 60-day period after mailing of the notice of
delinquency, the Secretary of State shall promptly decertify the name
of the corporation to the Franchise Tax Board.  The Franchise Tax
Board shall then promptly abate any penalty assessed against the
corporation pursuant to Section 19141 of the Revenue and Taxation
Code.
   (f) If the Secretary of State determines that the failure of a
corporation to file a statement required by Section 6210 is excusable
because of reasonable cause or unusual circumstances that justify
the failure, the Secretary of State may waive the penalty imposed by
this section and by Section 19141 of the Revenue and Taxation Code,
in which case the Secretary of State shall not certify the name of
the corporation to the Franchise Tax Board, or if already certified,
the Secretary of State shall promptly decertify the name of the
corporation.
  SEC. 2.  Section 19411 of the Revenue and Taxation Code is amended
to read:
   19411.  The Franchise Tax Board may recover any refund or credit
or any portion thereof which is erroneously made or allowed, together
with interest at the adjusted annual rate established pursuant to
Section 19521 beginning 30 days after the board mails a notice and
demand for repayment, in an action brought in a court of competent
jurisdiction in the County of Sacramento in the name of the people of
the State of California within whichever of the following periods
expires the later:
   (a) Two years after the refund or credit was made.
   (b) During the period within which the Franchise Tax Board may
mail a notice of proposed deficiency assessment.
  SEC. 3.  Section 23188 of the Revenue and Taxation Code is amended
to read:
   23188.  In the event that taxes, interest, or penalties have been
or shall be assessed against, paid by, or collected from a taxpayer
under a subdivision of Section 23181 or 23183.1, which assessment,
payment, or collection should have been made under a different
subdivision of those sections, the taxes, interest, or penalties
shall be considered as having been assessed, paid, or collected under
that different subdivision as of the date or dates they were made.
